Concerns are rising as Australia’s financial authorities and law enforcement highlight a surge in scams linked to crypto ATMs, targeting unsuspecting users across the nation.
From January 2024 to January 2025, there were 150 unique reports made to ReportCyber regarding crypto ATM fraud, with losses exceeding A$3.1 million (approximately US$2 million). Alarmingly, many of the victims are older adults, prompting regulators to act swiftly to enhance consumer protections.
New Regulations for Operators
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has introduced a regulation limiting cash withdrawals and deposits at crypto ATMs to A$5,000 (around US$3,250). Operators now must display clear warnings about scams, monitor transactions more rigorously, and conduct thorough customer checks.
Implemented from June 3, these regulations primarily impact ATM operators, but AUSTRAC has suggested crypto exchanges consider similar measures if they allow cash purchases of cryptocurrency.
AUSTRAC’s CEO Brendan Thomas emphasized that the effectiveness of these regulations will be closely monitored, with the potential for adjustments if necessary.
Older Adults Vulnerable to Scams
Research indicates that a significant portion of cash transactions at crypto ATMs involves users aged 50 and above, with this demographic accounting for approximately 72% of total transaction value.
This trend raises alarms as many seniors fall victim to scams, where fraudsters instruct them to send money via a crypto ATM to “validate” an investment or retrieve supposedly stolen funds.
Unfortunately, numerous victims are unaware of being scammed until it is far too late. To combat this, AUSTRAC is advocating for enhanced “know your customer” protocols to be implemented directly at the kiosk.
Need for Increased Reporting
Commander Graeme Marshall from the Australian Federal Police (AFP) has noted that many scam victims opt not to report their losses due to embarrassment or uncertainty over the reporting process. He urges anyone who has been scammed to reach out to loved ones and inform them of their experiences.
Sharing these stories is crucial; it can help raise awareness and potentially prevent others from becoming victims. With only 150 cases reported in the past year, the AFP speculates that this may only represent the tip of the iceberg, as many scams likely remain unreported.
Exponential Growth of Crypto ATMs
In recent years, Australia has witnessed a substantial increase in crypto ATMs, escalating from a mere 67 in August 2022 to nearly 1,820 by June 2025. This rapid proliferation places Australia as the third-largest market globally for these machines.
In just one year, around 150,000 cash transactions were recorded, channeling nearly A$275 million (approximately US$178 million) into Bitcoin, Ether, and various stablecoins. Key players in this market include private companies like Localcoin (753 machines), Coinflip (700), and Bitcoin Depot (182).
As the number of ATMs continues to grow, so does the risk of fraudulent activity, particularly if operators do not enforce stringent oversight.
Image courtesy of Gemini, data sourced from TradingView
